WEAK PMI DATA AND BREXIT RUMOURS SEND STERLING LOWER

The British pound has moved lower towards the 1.2950 support level during the European session, as June UK manufacturing data came in much weaker than expected at 54.3 against the expectation of 56.3.

Also weighing on sterling is widespread speculation that the first round of discussions between the United Kingdom and the European Union, may result in David Davis's team of UK negotiators walking out if EU negotiators insist on a €100 billion exit fee.

The GBPUSD pair is turning bearish on all lower time frames, however, the pair retains a medium-term bullish bias whilst trading above the 1.2881 level.

Intraday support for the pair below the 1.2950 level, is located at the weekly pivot point at 1.2920, and the former monthly pivot point at 1.2897.

To the upside, resistance for the pair is found at the H4 time frame 20 period moving average at 1.2977, and then the daily pivot point at 1.3005.